This archive report was first published on 1 August 2019.
August 1, 2019 - Safaricom, Kenya's leading telecommunications company, is set to undergo a significant change in its board composition. The company's shareholders will vote on a proposal to increase the number of directors from 10 to 11, with a majority of the new seats reserved for Kenyans.
The move comes in the wake of the passing of Bob Collymore, the company's former CEO, who succumbed to cancer last month. Michael Joseph, a Kenyan-American, has been appointed as the interim CEO. The proposal aims to ensure that the board is made up of six Kenyans out of the 11 directors.
The Kenyan Government, which holds a 35% stake in Safaricom, has been pushing for a Kenyan to succeed Collymore as the CEO. Vodafone Kenya, the company's majority shareholder, has also been involved in the debate, with some of its directors holding different nationalities.
Safaricom has made significant profits in recent years, with a net profit of Sh63.4 billion in the year to March 2019. The company has also launched several successful products, including Fuliza, its mobile overdraft facility, which has advanced Sh45 billion to customers in just five months.
